The Internet is becoming the premier source of information and communications. Rapid growth is expected to continue due to the large numbers of businesses and homes with computers, and the popularity of the World Wide Web. With CompuServe, America-on-Line and the Microsoft Network through Windows 95 now providing access, it has been estimated that there are over 35 million internet users.
Revenues from goods and services purchased via the Internet will reach $600 billion in the next five years according to Killen & Associates, a technology trends firm. This represents goods and services purchased directly from the Internet, not revenues generated indirectly from exposure and goodwill created by an Internet presence.
While online shopping has enormous potential, companies should not rely solely on the internet being the purchase vehicle.
A study by Survey-Net (7/95), showed over 80% of survey participants in general liked the idea of online, computerized shopping. 30% of survey participants worried about giving the credit card information over the phone versus 68% worried about giving the same information in a non-secured transaction over the internet.
Marketing on the Internet allows you to attract a more narrow target market than traditional advertising methods. In addition, you have the ability to quickly measure the effectiveness of a specific offer to a specified audience.
The Internet provides a new, exciting, level playing field for companies of all sizes. The perception your pages project is more important than company size.
The Internet allows one to access a huge, vast market of international customers for a very low fixed cost. Communication though the Internet is "virtually free" for both you and internet users. A study by Verity and Hof suggested it may be one-fourth less costly to perform direct marketing through the Internet than through conventional channels. Other studies have shown marketing on the web may also be more effective.
The Internet combines the benefits of normal advertising with the "pulling power of the yellow pages." The internet reader has a permanent record of your message. Like the yellow pages, the readers must look to find you. The key is to give them a reason to look, and then come back, as well as make your address easy to locate.
One can utilize the internet as an efficient channel for advertising and in some cases distribution. Purchasing products off the net is still in its infancy, but has enormous potential. The World Wide Web has the advantages of being graphical and interactive, while reaching an international market. It provides instant gratification to those requesting information or requiring assistance.
Companies and individuals that are establishing a presence now, will be in better position to profit from future opportunities. One can enhance their reputation, and position themselves as an innovator in their field. Also, it is still "hip" to be on the net.
Another thing to consider, your competitor is doing it. One survey showed more than 75% of marketing executives plan to include the Internet in their marketing mix in the next two years.